Chapter 2020Integrating and Controlling the Retail Strategy

RETAIL MANAGEMENT:A STRATEGICAPPROACH,

10th Edition

BERMANBERMAN EVANS EVANS

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Chapter Objectives To demonstrate the importance of

integrating a retail strategy To examine four key factors in the

development and enactment of an integrated retail strategy: planning procedures and opportunity analysis, defining productivity, performance measures, and scenario analysis

To show how industry and company data can be used in strategy planning and analysis (benchmarking and gap analysis)

To show the value of a retail audit

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Planning Procedures

Outline the firm’s overall direction and goals

Combine top-down plans and bottom-up or horizontal plans

Enact specific plans, including checkpoints and dates

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Figure 20-2: The Integrated Strategy of Chico’s

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Performance Measures

Total sales Average sales per

store Sales by goods/

service category Sales per square foot Gross margins Gross margin return

on investment

Operating income Inventory turnover Markdown

percentages Employee

turnover Financial ratios Profitability

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American Customer Satisfaction Index (ACSI)

Are customer satisfaction and evaluations of quality improving or declining in the United States?

Are they improving or declining for particular sectors of industry and for specific companies?

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Figure 20-3: Opportunity Analysis with the SBA

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Measuring Service Retailing

Reliability Responsiveness Assurance Empathy Tangibles

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Figure 20-4: Utilizing Gap Analysis

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Minimizing Gaps

Customer insight Customer profiling Customer life-cycle Extended business model Relationship program planning and

design Implementation

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Figure 20-5: Retail

Audit Process

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Figure 20-6a: Management

Audit Form for

SmallRetailers

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Figure 20-6b: Management

Audit Form for

SmallRetailers

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Obstacles to Doing a Retail Audit

An audit may be costly It may be quite time consuming Performance measures may be

inaccurate Employees may feel threatened and not

cooperate as much as desired Incorrect data may be collected Management may not be responsive to

the findings

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Figure 20-7: Retailing

Effectiveness Checklist